Petrol prices have risen for the previous six months and additional will increase are on the playing cards as oil nears $70 a barrel, in accordance to the RAC.
The motoring organisation mentioned that unleaded prices rose by virtually a penny a litre in April to finish the month at a mean of simply over 127p a litre. That was the best degree since January 2020 and took the fee of filling up a mean household automotive to £69.95. Prices for diesel prices rose for a fifth month-to-month in a row to slightly below 130p.
The RAC mentioned that with oil prices having risen by almost $5 final month, “wholesale petrol and diesel prices are also now on the rise, which is likely to translate into even higher pump prices for drivers in May”.
Brent crude, the worldwide benchmark oil value, yesterday traded up to inside a whisker of $70 a barrel, a threshold it final briefly surpassed in March after assaults on Saudi manufacturing services. That degree had not been seen since January final 12 months earlier than the pandemic hit, triggering a collapse in demand that despatched prices plunging under $20 a barrel by April 2020.
Prices have rallied in latest months as demand has recovered and vaccination programmes convey hopes of an enduring restoration. Yesterday’s rise adopted a drop in US oil stockpiles.
The Opec+ alliance of main producers, which curtailed output final 12 months to deal with the provision glut, has additionally continued to restrict provides.
Simon Williams, RAC gasoline spokesman, mentioned: “April marks six months of rising petrol prices and sadly there’s no finish in sight as oil is getting perilously shut to hitting $70 a barrel.
“If oil breaks this threshold, it will inevitably spell more bad news for drivers at the pumps. With lockdown restrictions easing, it’s very frustrating for drivers that they’re now having to contend with even higher fuel prices just at the point where many will be driving a lot more. But unfortunately, it’s the very fact people are driving more that’s causing petrol prices to go up as demand for oil, and in turn fuel, begins to outpace supply.”